UK government looking to reduce tax incentives for ISAs
The UK government is believed to be considering a reduction in the number of tax incentives connected to ISAs which have proved to be very popular amongst UK investors. While initially ISA accounts were deemed to be the property of the rich and famous they have in fact been used as tax efficient investment vehicles for many people in the UK. Indeed many ISAs have taken over from the traditional retirement pension plan due to the many tax incentives available.
If the UK government looks to reduce tax incentives on ISA accounts this will again be seen as an attack on private pensions/retirement plans and ultimately could cost the UK taxpayer more in benefit payments in the long run. While there is no doubt that the authorities do need to reduce incentives and government investment in the UK economy at the moment, and use savings to focus upon areas of major concern, the UK authorities also have a duty to look longer term.
These short-term fixes may well prove useful with regards to immediate funding requirements but ultimately there is perhaps more benefit retaining tax incentives for personal investments in the long run. Whether these are just scare stories head of the budget review next week remains to be seen.
Share this..
Related stories
Will Alistair Darling take on the Prime Minister over the forthcoming budget?
While Alistair Darling and Gordon Brown are known to be at loggerheads regarding the forthcoming UK budget, indeed there is even talk that the budget could be scrapped before the election, there is a growing feeling that Alistair Darling is becoming more and more confident. This week we saw the Chancellor of the Exchequer issue an astounding statement suggesting that "Number 10" had been guilty of...
Read MoreGovernment to scrap Audit Commission
Eric Pickles, the Communities Secretary, has today announced that the Audit Commission will be scrapped saving the UK government around £50 million a year. This is a body which has been in place since 1983 and basically overlooks the quality of service offered by local authorities around the UK. Despite the fact that the Audit Commission had already been looking towards transferring many of its f...
Read MoreWhy do MPs receive tax-free expenses?
As the revelations regarding MPs expenses continue to crawl out of the woodwork one issue which has received little coverage in the press is the fact that not only are MPs allowed to claim expenses for a growing number of services and products but these expenses are actually tax-free. When you consider that even the worst paid MP is on more than £50,000 a year with Cabinet ministers in excess of...
Read MoreWhat has prompted an increase in alleged tax avoidance prosecutions?
Earlier this week the UK authorities won a high-profile court case regarding offshore trusts and the ability of the authorities to backdate tax demands prior to the 2008 Finance Act. Not only will this see the UK government reclaim hundreds of millions of pounds of unpaid taxes but it has also sent a serious shot across the bows for those who hold funds offshore and have perhaps neglected to decla...
Read MoreCredit Suisse announces surprise bonus payments
Financial giant Credit Suisse has today surprised the City with the announcement that 400 managing directors are set to receive one-off "discretionary leadership awards" which will take the form of cash payments. However, these payments, subject to performance targets, will not be released to the individuals in question until 2012 and 2013, after the UK government's 50% bonus tax rate has expired....
Read More